Cautious outlook for manufacturing sector in 1H26

Cautious outlook for manufacturing sector in 1H26

The Star Online - Business·2025-12-08 11:10

PETALING JAYA: Economists are positive on the country’s manufacturing activities as the year ends, but some are taking a cautious stance towards this trend moving into the first half of next year due to looming headwinds.

The electrical and electronics (E&E) sub-sector, including semiconductors, is expected to lead the way for stronger manufacturing growth, further underpinned by the deployment of artificial intelligence (AI), favourable investments and construction activities from various projects.

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